Park Medi World Limited

Healthcare — Medical Care Facilities · NSE

₹236.00+₹0.85 (+0.36%)

DalalBaazaar Score

62 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

The 60-second version of Park Medi World Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Park Medi World Limited operates a network of hospitals.

IndustryMedical Care Facilities

SectorHealthcare

Employees6,423

Annual revenue₹1,651 Cr

How does it make money?

Turns over ₹1,651 Cr a year. Of every ₹100 of sales, about ₹16 reaches shareholders as profit, with ₹29 left at the operating level before interest, tax and depreciation. Each of its 6,423 employees supports ₹25.7 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹25.7 lakh

Who are its competitors?

The closest listed comparisons in its industry are APOLLO HOSPITALS ENTER. L, SUN PHARMACEUTICAL IND L, CIPLA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 17.9% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE14.5%

What is the outlook?

1 analysts covering the stock expect revenue to grow about 31.8% and earnings to grow about 34.2% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+31.8%

Est. earnings growth+34.2%

Analysts1

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +32% while net margin moved -11% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+32%

Margin effect-11%

DalalBaazaar Score

62/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Small Cap: thinner liquidity and sharper drawdowns are normal

Quality vs. Valuation

Company Quality

68/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

45/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

35.9x

1.0Y Median

41.4x

12 monthly readings · mean 44.6x · range 31.4x–64.1x

Sector Median

34.9x

median of 3 sector peers

🟢Current valuation is approximately 13% below its 1.0y median of 41.4x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟡Against its sector it is priced broadly in line with the peer median of 34.9x.

vs. its own history

Fair

41.4x median over 12 months · -13%

vs. sector peers

Fair

34.9x median of 3 peers · +3%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

21.9x

PEG

6.50

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 37% over 3 years.
Cash generation is improving
Free cash flow is up 117% over 3 years.
Very low debt
Debt/Equity of 0.17x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 32.0% to 12.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 34.0% to 17.9% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 5.6 points, from 34.1% to 28.5%.
🟡Inventory building faster than salesFinancial
Inventory up 72% against revenue up 32% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 37% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹209 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 34.1% to 28.5%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Returns on shareholder capital are falling
ROE has dropped from 32.0% to 12.8%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 27%✓ 28.5%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 7% a year✓ 9.6% CAGR
Latest reported year was 19.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹209 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 15%✓ 17.9%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

6 good · 5 neutral · 0 weak

Market Cap

₹10,194 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

35.9x

Fair

Fairly valued against the generic band

P/B Ratio

4.65x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹6.57

Profitable

Profitable on a per-share basis

ROE

12.8%

Moderate

Moderate capital efficiency

ROCE

17.9%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.17x

Low

Conservative leverage

Revenue Growth (YoY)

19.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

20.6%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹209 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

22.3x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

22.5%

Good

Healthy core-business profitability

Net Margin

16.1%

Good

Strong bottom-line conversion

Current Ratio

2.06

Comfortable

Healthy short-term liquidity

52W Range Position

59%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

267.8 / 276.5

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

24.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,252 Cr	₹1,229 Cr	₹1,392 Cr	₹1,651 Cr	+9.6%
EBITDA	₹428 Cr	₹348 Cr	₹401 Cr	₹471 Cr	+3.2%
EBITDA Margin	34.1%	28.3%	28.8%	28.5%	—
PAT (Net Profit)	₹220 Cr	₹153 Cr	₹202 Cr	₹258 Cr	+5.5%
EPS	₹5.09	₹3.55	₹4.67	₹6.87	+10.5%
ROE	32.0%	17.4%	19.2%	12.8%	—
ROCE	34.0%	20.8%	21.8%	17.9%	—
Total Debt	₹576 Cr	₹687 Cr	₹682 Cr	₹364 Cr	-14.2%
Free Cash Flow	₹97 Cr	₹290 Cr	₹70 Cr	₹209 Cr	+29.4%

🟢 Revenue has grown at 9.6% a year over 3 years.

🟢 EBITDA has grown at 3.2% a year over 3 years.

🔴 EBITDA Margin has fallen from 34.1% to 28.5% over 3 years (-5.6 pts).

🟢 PAT (Net Profit) has grown at 5.5% a year over 3 years.

🟢 EPS has grown at 10.5% a year over 3 years.

🔴 ROE has fallen from 32.0% to 12.8% over 3 years (-19.2 pts).

🔴 ROCE has fallen from 34.0% to 17.9% over 3 years (-16.1 pts).

🟢 Total Debt has shrunk at 14.2% a year over 3 years.

🟢 Free Cash Flow has grown at 29.4% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,813 Cr

Total Liabilities

₹709 Cr

Cash & Equivalents

₹237 Cr

Operating Cash Flow

₹329 Cr

Capex

-₹120 Cr

Shareholding (proxy)

Institutional Holding

5.6%

Insider Holding

83.9%

Analyst Consensus

Recommendations

2 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹362.5

+53.6% vs CMP

Target Range

₹350 – ₹375

Peer Comparison

Company	P/E	ROE
APOLLO HOSPITALS ENTER. L	54.3x	22.0%
SUN PHARMACEUTICAL IND L	34.9x	14.5%
CIPLA LTD	31.8x	9.8%

Recent News

3 mixed3 general

Park Medi World shares: Hospital stock dips 15% in a month - Will the stock rebound? Experts show road map to investors

TradingView, 13 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

PARK MEDI WORLD Share Price Down 6.56%: Key Data

Univest, 12 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Explained - Why Apollo Hospitals, Fortis, Aster DM, Park Medi world sold off again on Monday

CNBC TV18, 12 Oct

Park Medi World Limited Just Beat EPS By 27%: Here's What Analysts Think Will Happen Next

Simply Wall Street, 07 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Park Medi World Ltd | Stock Share Price Live

MarketSmith India, 04 May

Compare with

Equitymaster, 17 Oct

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health

MiddlingGrowth · Profitability · Valuation

WeakRisk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑